Dai Truong's Cannabis Newsletter - Issue #20


Cannabis

Canadian Luxury Brand Tree Trunk Launches Exclusive Capsule Collection with MedMen

Tree Trunk is the standard in luxury cannabis furnishings–defining style and innovation with the fusion of genuine craftsmanship and timeless design. For more information, visit treetrunk.com.

State Investigations Arise in Ohio for Acreage and Harvest Health

Acreage affiliate Greenleaf Apothecaries, operating under the name The Botanist, supposedly “transferred ownership without state approval and/or misrepresented facts submitted with its dispensary application last year.”

Harvest of Ohio LLC does not qualify as an “economically disadvantaged group” as defined and claimed in its application to the Board.

Cookies to launch exclusive "Gary Payton" Strain Named After Basketball Player

The exclusive deal, which includes the licensing of Gary Payton’s name and image, is part of a joint venture with Powerzzz Genetics, creator of this particular strain.

“Kenny & J just finished a pheno hunt with some of our new favorite crosses. We all sat down, as usual, and started to smoke through the new flower. The #20 stood out big time and naturally Kenny called it ‘That Gary Payton,’” says Berner, Cookies founder and CEO. “Lots of people have been waiting on the Snowman and the Y, so the cross was instantly hyped. We spread the #20 out with our friends and everyone shared it on social media tagging "Gary Payton.”

In high-stakes world of pot edibles, cannabis companies aim to start small

Far from the cornucopia of pot-wares sold in legalized U.S. states — where everything from dissolving breath strips to cotton candy can be had — Canopy and many other licensed producers here have chosen to concentrate on a small core of offerings. Canopy will be concentrating on just three product lines to begin with: vaping juices and devices, alcohol replacement beverages and high-end chocolates.

Acreage Holdings provides operation updates in the Sunshine State and discloses departure of CMO

Acreage closed on a cultivation and production facility in Sanderson, a community in Baker County, FL. The location sits on 15.4 acres of land and comes with a 109,000 square foot building able to accommodate the build out a processing facility with the capabilities of Form Factory, Acreage’s recently acquired subsidiary. Acreage tentatively plans to construct a 100,000 square foot greenhouse on the property.

Seven dispensary locations have been secured via lease agreements with locations in Hollywood, Spring Hill, Daytona, Orange Park, North Miami Beach and two locations in Miami. Of the two in Miami, the Miami Beach dispensary will be Acreage’s flagship location in the state of Florida.

Cannabis Growth Opportunity Corporation Announces NAV of $3.11

Cannabis Growth Opportunity Corporation Announces NAV of $3.11, a 34% increase since the IPO, on January 26, 2018 , and 12% year to date. CGOC is invested in companies operating in Canada , the U.S., Europe , Latin America , Jamaica and Israel , with an investment split across the private and public portfolios of 36% and 65% respectively. CGOC’s top ten public investments as of July 15, 2019 (in alphabetical order) are: Bhang Inc (CSE:BHNG), Grassroots Cannabis, (acquired by Curaleaf), Heritage Cannabis (CSE:CANN), Jushi Holdings Inc (NEX:JUSH.B), LPF Investment Corp (not yet listed),Next Green Wave (CSE:NGW), Planet 13 Holdings Inc (CSE:PLTH), TerrAscend Corp. (CSE:TER), Vireo Health Inc. (CSE:VREO) and VIVO Cannabis (VIVO.V).

Marijuana-delivery service Eaze scales back $1B ambitions

After projecting it would sell $1 billion worth of cannabis on its platform in 2020 in a previous funding round, Eaze now predicts less than $500M in gross transaction value.

Boston’s first recreational marijuana store receives preliminary license, could open within months

Pure Oasis also became the first licensee in the state’s economic empowerment program, which helps people from groups hurt by the war on drugs.

California pot seller asks court to void county delivery ban

Another legal fight is underway over home marijuana delivery in California. A licensed cannabis company has sued Santa Cruz County, claiming that it’s violating state law by prohibiting deliveries from out-of-county retailers into a swath of unincorporated areas. The East of Eden Cannabis Co. lawsuit filed Friday in Superior Court in Santa Cruz County comes as the latest development in a thorny legal fight over who decides where pot can be delivered in California.

Vireo Health Launches New York's First Same-Day Marijuana Delivery Service

Vireo Health of New York, a subsidiary of Vireo Health International (CSE: VREO), a leading physician-led, science-focused multi-state cannabis company, announced that patients living in the New York City metro area, Westchester County, and Nassau County now have access to free, same-day marijuana delivery.

Launched in April 2017, Vireo’s medical marijuana home delivery service has rapidly expanded. Since its inception, the Company has made more than 25,000 home deliveries to patients. With over 1,000 Google reviews with an average 4.9 out of 5 star rating, it is now the first company in New York to offer a free same-day delivery option.

Ex-Banker Builds Billion-Dollar Fortune as Legal Pot Sweeps U.S.

A former Credit Suisse banker best known for his role in privatizing Russian state assets after the fall of communism is capitalizing on another transformative moment, this time in the U.S.Boris Jordan, 53, is getting rich from cannabis. His 31% stake in Curaleaf Holdings Inc., the biggest U.S. pot company by market value, is worth more than $1 billion, according to the Bloomberg Billionaires Index.

Jordan’s road to weed wealth started in 2013 when his Moscow-based private equity firm, Sputnik Group, invested in PalliaTech Inc., a medical-device maker. He and his partners spent more than $100M to build it into a national chain now called Curaleaf.

Sproutly Announces Plans to Launch BioNatural Oil Products Under CALIBER Brand

BNO is recovered using the Company’s proprietary APP Technology. In the second step, following the recovery of the naturally water-soluble molecules (known as Infuz20), BNO is recovered directly from the plant biomass. Unlike traditional extraction methods that use unnatural chemical solvents, BioNatural Oil is a naturally-derived, strain specific oil that delivers a whole plant experience in oil and edible formats.

Flower One Announces Licensing Agreement with The Clear Cannabis Group, Bringing Pure Refined Cannabis Oils to Nevada

Flower One (CSE: FONE) (OTCQB: FLOOF) announced a long-term licensing agreement with Denver-based Clear Cannabis, Inc. (CCI) – who licenses The Clear™, one of eight marquee brands licensed under its parent company. The Clear product suite was founded by scientists and engineers with substantial expertise in chemistry, biology, and engineering, and the vision of carving out a unique space within the cannabis industry. The Clear is the first manufacturer to bring pure, refined cannabis oil to market globally. Flower One is now licensed to produce, manufacture, and distribute The Clear’s product to Nevada’s cannabis retailers, providing the state’s consumers with a consistent supply of The Clear’s popular line of flavorful cannabis oils.

‘Breakdown’ in Washington state cannabis commerce over traceability system update costs businesses thousands

An outage of Washington state’s seed-to-sale traceability system prevented hundreds of cannabis producers, processors and retailers from conducting business-to-business transactions starting last Sunday and ending Wednesday morning.

Organigram and Lift & Co. Enhance Education of Cannabis Frontline Staff via Brand-Specific Training Program

CannSell’s retail certification program, developed in partnership with MADD Canada to promote the responsible sale of cannabis, is available in seven provinces and one territory. CannSell stands as the sole mandatory, provincially-approved cannabis training program for all Ontario retail workers. Organigram is the first licensed producer in Canada to partner with Lift & Co. on educational content on the platform focusing on the Company’s unique growing processes and product attributes.

Cannvas Continues With Strong Focus on Intelligent Cannabis Education for European Market

Cannvas MedTech is a leading digital cannabis education and analytics company delivering accessible and evidence-based education while harnessing the power of data to paint a clearer picture of cannabis consumption across Canada.

The Company is looking to raise $2M through a non-brokered private placement.

CBD

Sephora pulls the trigger on selling CBD in stores with Lord Jones

Less than a year after first dabbling in selling CBD products online, Sephora is finally ready to bring its offering to stores.

On Friday, Sephora began selling an edited assortment of Lord Jones’ skin care in 171 stores in New York, California, Indiana Kentucky and more. Lord Jones’ body lotion and body oil, with 100 milligrams of broad-spectrum CBD, will be available in stores next week, and in September, Lord Jones’ Royal Oil that retails for $100 will be present in stores.

Deals

Curaleaf acquires Grassroots for $875M

Curaleaf Holdings Inc., the most valuable U.S. marijuana company, is pushing into the Midwest to tap potentially lucrative markets that are taking shape in Michigan and Illinois. Curaleaf, backed by Moscow banking veteran Boris Jordan, is buying Chicago-based Grassroots Cannabis in a cash and stock deal valued at about US$875 million. The shares surged as much as 14%.

Deck for acquisition of Grassroots

Company Announcement

TILT Holdings Announces $125M Convertible Note Financing

TILT Holdings (TILT.CN) (SVVTF) announced that it has signed a binding term sheet for a private placement of $125M from a syndicate of institutional investors led by UCP, a Toronto-based investment firm specializing in cannabis.

Jushi closes $63M PA deal for medical cannabis dispensary

Jushi, a Florida cannabis company, will acquire Pennsylvania-based Franklin Bioscience in a $63M deal that includes licenses for 12 dispensaries.

Demetrix Secures $50M In Series A Funding To Provide Cannabinoids To Pharmaceutical, Supplement, And Consumer Product Companies

Demetrix Inc., a biotechnology company focused on the production of cannabinoids, announced that it has secured $50M in Series A funding. The round was led by Tuatara Capital with participation from existing investor Horizons Ventures. Horizons Ventures previously led Demetrix’s $11M Seed round.

MedMen Announces Increased Commitment From Gotham Green Partners

Gotham Green Partners, with participation from Wicklow Capital, commits to additional $30M equity commitment, bringing total commitment to $280M.

Supreme Cannabis to Close Acquisition of Premium Wellness Brand and Extraction Company Blissco

With the closing of the Blissco acquisition, Supreme Cannabis will gain advanced extraction infrastructure and expertise. Blissco’s production facility in Langley, British Columbia has been producing cannabis oils and pre-rolls since receiving its cultivation, cannabis sales and oil production licenses in 2018. The facility houses a state-of-the-art cannabis oil extraction lab with a CO2 extractor capable of producing full spectrum oil. Planned additions to the Facility include the installation of an ethanol extractor that will serve the increasing demand for full spectrum CBD and THC derivative products. By the end of 2019, it is expected that the Facility will have the capacity to produce over 7,000,000 tincture bottles annually.

Supreme Cannabis to acquire Truverra as it prepares for Legalization 2.0 and Global Medical Markets

The Supreme Cannabis Company, Inc. (TSX: FIRE) (OTCQX: SPRWF) announced that it has entered into a definitive agreement under which Supreme Cannabis will acquire all of the issued and outstanding shares of privately-held Truverra, to be effected by way of a three-cornered amalgamation between Truverra, Supreme Cannabis and a wholly-owned subsidiary of Supreme Cannabis. The Transaction is valued at 14.7M common shares of Supreme Cannabis, giving the Transaction an approximate dollar value of $20M as of the Company’s closing price on July 16, 2019.

SOL Global announces $15M Investment into Heavenly Rx

The subscription is part of a larger private offering by Heavenly Rx of Heavenly Shares. As a result of this subscription, SOL Global now holds 42.0% of the issued and outstanding Heavenly Shares and the other shareholders of Heavenly Rx collectively hold the remaining 58.0%. The Heavenly Shares are subject to an indefinite hold period under applicable Canadian securities laws.

Jones Soda Completes $9M Strategic Financing with SOL Global Portfolio Company HeavenlyRx

Jones Soda (OTCQB: JSDA), a leader in the craft soda category known for its unique branding and authentic connection to its consumers, has completed a $9M strategic financing with HeavenlyRx, a portfolio company of SOL Global focused on acquiring unique brands to sell CBD and hemp-infused products.

SOL Global Announces $6.5M Investment in CannCure

CannCure is a majority-owned subsidiary of SOL Global that indirectly holds 100% of 3 Boys Farms, a Florida limited liability company with a Florida state license to cultivate, process and dispense medical marijuana and other diversified cannabis assets in various stages of investment.

Arcview raises $7.7M Series A

The Arcview Group, a cannabis industry investor network, raised a $7.7M Series A, led by Trivergance Investments with participation from Cresco Capital Partners.

Cannabis Growth Opportunity Corporation Announces New Investment in PlantEXT Ltd.

Cannabis Growth Opportunity Corporation (CSE: CGOC), a cannabis-focused investment corporation with both public and private cannabis holdings, has completed a new investment within its private portfolio, in PlantEXT Ltd., a leader in the development and commercialization of pharmaceutical cannabis formulations backed by pre-clinical and clinical studies, for the treatment of inflammation related medical conditions.

MPX International Acquires 20% stake in Medical Cannabis Learning Network

KAAJENGA Cannabis has developed and is in the process of commercializing a Cannabis Kiosk Solution (CKS) using its proprietary video learning and engagement rewards platform to activate, educate, and engage audiences through a private social learning network.

Weekend Unlimited raised $2M CAD

Weekend Unlimited (CSE:POT) (OTCMKTS:WKULF) announced it has raised ~$2M CAD to help fund brand acquisitions.

People

GrowGeneration Appoints Former Home Depot CEO Bob Nardelli as Senior Strategic Advisor

GrowGeneration Corp. (OTCQX:GRWG), (“GrowGen” or the “Company”) one of the largest chains of specialty retail hydroponic and organic gardening stores in the world, announced today that it has appointed Bob Nardelli as a strategic advisor.

Curaleaf Announces Two Executive Appointments

Dave Johnson has been appointed President of Curaleaf Hemp, and Troy Morgan has been appointed Senior Vice President of Compliance. “Our Curaleaf Hemp and Bido brands have become consumer favorites and attracted the attention of major retailers across the country,” said Joseph Lusardi , Curaleaf CEO.

United Cannabis Names Former Ford Motor Company Exec as CMO

Renowned for his business development and strategic planning capabilities, Mr. Lambreth has worked with over 250 companies and organizations throughout his career. He spent 26 years at the Ford Motor Company in various divisions - including Fleet Management, Marketing and Sales, Finance and Insurance, and as Lincoln Brand Manager, NASCAR Liaison, and North East Operations Manager.

Following his tenure at Ford, Lambreth went on to serve as Chief Operating Officer for a New York-based luxury brand, SLANE Jewelry, where he led the jewelry company to a 25% increase in the first year. Most recently he founded the Nashville-based First Regents Digital Media, a full-service agency and distributor of digital advertising. Mr. Lambreth is also the founder and CEO of Daniel Bradley Matthews, Inc., a strategic business and marketing consulting firm.

Cresco Labs Hires Angie Demchenko as its First Chief People Officer

Ms. Demchenko most recently served as Vice President, Head of Human Resources for Starwood Retail Partners, a leading operator of shopping malls and lifestyle centers. As Cresco Labs’ Chief People Officer, Ms. Demchenko will be responsible for performance management, recruitment, compensation and employee benefits, etc.

Charlotte's Web Names Former Pharmavite Executive Tony True as Chief Customer Officer

Mr. True comes to Charlotte’s Web from Pharmavite LLC, one of the largest U.S. manufacturers of high-quality vitamins, minerals, and other dietary supplements, where he served as Executive Vice President, Sales. As Chief Customer Officer for Charlotte’s Web, he will lead the Company’s sales strategy and forecasting, customer development and relationships, and retail execution.